35% of Americans Today Are Delaying Retirement. Here's Why.

Key Points

• Data reveals that a good number of Americans aren't ending their careers when they want to.

• Though economic conditions are a factor, there's another big issue at play.

• It takes careful planning to retire on time, but with the right strategy, you can pull it off.

• The $23,760 Social Security bonus most retirees completely overlook ›

Many people look forward to retirement, and in fact start counting down as soon as they're within a few years of ending their careers. But New York Life's latest Wealth Watch survey reveals a disturbing trend.

A good 35% of workers are delaying retirement when they'd rather leave the workforce sooner. That can be a huge disappointment after years of hard work. But it may be a situation you can avoid.

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Why Americans are delaying retirement

Among those delaying retirement, 51% say it's because they don't have enough retirement savings. Meanwhile, 46% point to stubborn inflation as a driving force, and 32% say changing economic conditions are making them nervous to end their careers.

All of these are valid points. But they don't have to stop you from retiring on time if you plan ahead.

Sticking to your timeline

The challenges today's near-retirees face aren't new. It's tough to say goodbye to the workforce at a time when inflation is rampant and economic conditions aren't ideal. But with the right plan, you can increase your chances of getting to stick to your retirement timeline.

The first and most crucial step is to begin funding a retirement account as early in your career as you can. That could mean forcing yourself to live in a less expensive home a while longer, or cutting back on other types of spending to free up money for your IRA or 401(k). The sooner you begin contributing steadily to one of these accounts, the more your money can grow.

Next, make sure your investment portfolio is poised for growth. For the most part, that means going heavy on stocks while you're building wealth for retirement. But make sure to diversify your portfolio, too, so you're not taking on too much risk.

Then, as you get closer to retirement, reassess your portfolio to make sure it's set up to meet your needs.

You don't want to dump stocks completely ahead of retirement, as you still need your portfolio to generate income once you stop working. Rather, the years leading up to retirement are a good time to scale back on aggressive growth stocks, and perhaps shift over to more income-producing assets that tend to be a bit less volatile, like dividend stocks and ETFs (exchange-traded funds).

If you find yourself with a large nest egg and a portfolio that's set up to generate steady income, you may find that you're able to retire when you want to -- even if inflation is elevated at the time and economic conditions aren't the most stable.

What about today's near-retirees?

If you're delaying retirement due to a lack of savings or because of the current economy, that's not necessarily a bad thing. A few more years in the workforce could allow you to boost your nest egg and tackle other financial goals you be hoping to achieve ahead of retirement, like paying off debt.

Also, delaying retirement could make it possible to hold off on claiming Social Security. For each year you delay your claim past your full retirement age, your monthly benefits get a permanent 8% boost, until you turn 70. So while holding off on retirement may not be totally ideal, there's at least that silver lining.

Of course, if you can't afford to retire just yet but aren't happy at your job, it's never too late to consider a change. Even if you take a pay cut in the process, working a few extra years at a job you enjoy may be preferable to plugging away in the role you've been itching to leave.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

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